Wilsons amends loan to set EBITDA covenants, lower interest rates

By Sara Rosenberg

New York, March 3 - Wilsons The Leather Experts Inc. amended its credit facility, setting EBITDA covenants for 2005 and thereafter and reducing interest rates on its $150 million revolver and term loan B promissory note, according to a company news release.

The amendment also allowed the company to prepay up to $10 million of its term B promissory note on or before Feb. 28, without penalty, according to a company news release.

Immediately following execution of the amendment, the company prepaid $5 million of its term B note.

GE Capital, CIT, Wells Fargo and LaSalle are the lead banks on the revolver.

"We are extremely pleased with the flexibility of our amended credit agreement and the ability to further strengthen our financial position. Reducing our long-term debt enables our company to increase our long-term liquidity and provides a solid foundation for growth," said Michael Searles, chief executive officer, in the release.

Wilsons is a Brooklyn Park, Minn., retailer of leather outerwear, accessories and apparel.

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